DoD's $19.6M Building Construction Contract Awarded to FITE BUILDING COMPANY, INC

Contract Overview

Contract Amount: $19,659,917 ($19.7M)

Contractor: Fite Building Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-17

End Date: 2013-02-15

Contract Duration: 2,374 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF BUILDING

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to FITE BUILDING COMPANY, INC. for work described as: CONSTRUCTION OF BUILDING Key points: 1. The contract value of $19.6 million falls within a typical range for large-scale construction projects. 2. FITE BUILDING COMPANY, INC. secured this award through full and open competition, indicating a competitive bidding process. 3. The project's duration of 2374 days (approx. 6.5 years) suggests a complex and long-term undertaking. 4. The sector is Commercial and Institutional Building Construction, a significant area of government spending.

Value Assessment

Rating: fair

The contract value of $19.6 million for building construction needs to be benchmarked against similar projects of comparable size and complexity. Without specific details on the building's scope, the value appears reasonable but requires further comparison to similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by fostering a competitive environment for contract awards.

Public Impact

This project contributes to the Department of Defense's infrastructure, potentially impacting military readiness or support services. The long duration of the contract suggests a significant construction effort that will span several years. The award to FITE BUILDING COMPANY, INC. represents a substantial economic activity within Alabama. The construction of a new building could lead to job creation in the local economy during the project's lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may increase risk of cost overruns or scope creep.
Lack of specific details on building scope makes value assessment difficult.
Potential for unforeseen site conditions in construction projects.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed price contract type can provide cost certainty.
Project contributes to essential government infrastructure.

Sector Analysis

The Commercial and Institutional Building Construction sector is a major component of federal spending, particularly for agencies like the Department of Defense that require extensive facilities. Benchmarks for similar projects would typically consider square footage, complexity, and location.

Small Business Impact

The data indicates that this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for large construction projects. The long duration necessitates ongoing monitoring to ensure compliance and performance.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration (2374 days).
Lack of detailed scope information for value assessment.
Potential for unforeseen site conditions.
Firm Fixed Price contract may not accommodate significant scope changes easily.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to FITE BUILDING COMPANY, INC.. CONSTRUCTION OF BUILDING

Who is the contractor on this award?

The obligated recipient is FITE BUILDING COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2006-08-17. End: 2013-02-15.

What specific type of building is being constructed, and how does its scope and complexity compare to other similar federal construction projects to justify the $19.6 million cost?

The provided data classifies the project as 'Commercial and Institutional Building Construction' but lacks specifics on the building's purpose (e.g., barracks, office, research facility), size (square footage), or unique features. A comprehensive comparison with similar federal contracts, considering these factors, is necessary to validate the $19.6 million expenditure and ensure it represents fair market value and efficient use of taxpayer funds.

Given the 2374-day duration, what are the primary risks associated with project delays, cost escalations, and potential changes in requirements for this construction contract?

The extended 2374-day duration presents significant risks, including potential cost escalations due to inflation, material price volatility, and labor market fluctuations. Project delays can arise from unforeseen site conditions, weather impacts, or permitting issues. Changes in military requirements or technological advancements during the construction period could necessitate costly scope modifications, impacting the overall effectiveness and final cost of the facility.

How effectively does the 'full and open competition' method ensure optimal value and quality for this long-term, high-value construction project compared to other procurement strategies?

Full and open competition is generally effective in driving competitive pricing and encouraging a wide range of qualified bidders, potentially leading to better value and quality. For a project of this scale and duration, it allows the government to leverage market competition to secure favorable terms. However, effective oversight throughout the contract's lifecycle remains crucial to ensure the awarded price and quality are maintained and that the final facility meets its intended operational needs.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3116 SEXTON RD SE STE A, DECATUR, AL, 35603

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $21,873,181

Exercised Options: $19,659,917

Current Obligation: $19,659,917

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline